Corp. Code, § 31020 · Part 1. DEFINITIONS

Corp. Code, § 31020

Verbatim from the official edition

Text — As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)

(a) “Franchise broker” means a person who directly or indirectly engages in the business of the offer or sale of a franchise, regardless of the title used by the person or any organization with which they are affiliated, and receives or is promised a fee, commission, or other form of consideration from a franchisor, subfranchisor, franchisee, or affiliate of a franchisor, subfranchisor, or franchisee. Common titles franchise brokers use include, but are not limited to, franchise seller, broker network, broker organization, franchise sales organization, consultant, and coach.

(b) A “franchise broker” does not include any of the following:

(1) A franchisor or its officers, directors, or employees.

(2) A subfranchisor or its officers, directors, or employees.

(3) An area representative or its officers, directors, or employees.

(4) An employee of an affiliate of a franchisor or subfranchisor.

(5) A franchisee of the franchise offering being presented to a prospective franchisee, unless the franchisee operates a franchised broker business.

Notes and commentary — not statutory text

History

Added by Stats. 2024, Ch. 518, Sec. 1. (SB 919) Effective January 1, 2025.

Source of truth

Edition: As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
Official file: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CORP&sectionNum=31020.
Text hash: sha256 0e0eba90da6d45e1749f64a80be2bb9d736cecb21841f3d50688b1f9a4972c94
Composed by: compose_ca.py 2026-10-22: the Legislative Counsel's CAML content files read by a tokenizer (caml_readers.reader_a); an independent xml.etree reading (caml_readers.reader_b) agrees on every section

Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.